If you are a UK taxpayer, we can benefit through the Gift Aid scheme to claim the basic rate tax back on every pound donated. In essence this means that a donation made under Gift Aid will be topped up by 25% by the Government – this makes a significant difference to the work that we can do. In order to make a Gift Aid claim, HMRC requires that a Gift Aid Declaration Form is completed by donors (a form is only required once).
Should you be a higher rate tax payer, you can recover the difference between the basic and higher rates of tax (20% and 40% respectively) on the total ‘gross’ value of your donation. For example, if you donate £100 to the Church, this equates to £125 including the gift aid amount. As a higher rate taxpayer you are able to recover £25 on your tax return (being 20% x £125). Tax relief is also available on a similar basis for those taxpayers paying at the additional rate (currently 45%).
An online Gift Aid form can be found here. Alternatively a Gift Aid form can be downloaded and printed here. This should then be returned to the Church Office.
Leaving a gift in your will is a practical way of saying “Thank you” to God for all the blessings we have enjoyed during our lives. Such giving contributes to the future activities of our Church.
All gifts to charities in a will are tax-free because gifts to the Church and other charities are deducted from the value of your estate when inheritance tax (IHT) is calculated. Currently (2016-17 tax year), IHT is payable on estates worth more than £325,000 at a rate of 40%. Moreover, if you leave gifts to a charity (including churches) in your will totalling 10% or more of the value of your estate, the rate of IHT you pay will be only 36%.
Inheritance tax can be complicated, and you are advised to seek specialist tax advice if your estate is large or your affairs are complex.
Other forms of giving
In addition to gifts of cash and legacies, there are tax advantages available should you wish to donate property or shares to your Church.
Many people have given generously out of unexpected income, such as inheritances or bonus payments. These payments can be made through the pew envelopes available in both churches or to the Parish Office. Cheques should be payable to Walton-on-Thames PCC.
Please get in touch with our treasurer via the office if you’d like to find out more – email@example.com